Subtracting tenths is very similar to subtracting whole numbers. It is important to line up the numbers by the correct place value.
.5 
Five tenths  

.3 
Three tenths 

.2 
Two tenths 
1.0 
One whole (which equals ten tenths) minus 
10

.3 
Three tenths 
3

.7 

7

Notice that the whole number one is written as 1.0 so that the numbers can be lined up to be subtracted more easily.
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